Saudi Arabia Construction Market is expected to grow at a robust CAGR 8.70% through 2030F
Vision 2030 and economic
diversification, urbanization and population growth are the factor driving the
Saudi Arabia Construction Market during the forecast period 2026-2030F
According
to TechSci Research report, “Saudi
Arabia Construction Market –
By Region, Competition, Forecast and Opportunities, 2020-2030F”, Saudi Arabia Construction Market was valued at USD 104.76 billion in 2024 and is expected to reach USD 174.37 Billion by 2030 with a CAGR of 8.70% during the forecast period. The
Saudi Arabia Construction Market is in a transformative phase, driven by the
visionary goals outlined in the Vision 2030 initiative. This ambitious agenda
aims to diversify the nation's economy, reduce dependence on oil, and position
Saudi Arabia as a global economic powerhouse. The construction sector plays a
pivotal role in realizing these aspirations, with mega-projects such as NEOM,
Qiddiya, and the Riyadh Metro exemplifying the scale and innovation
characterizing the industry. These projects span smart cities, entertainment
hubs, and advanced transportation networks, showcasing a commitment to
technological advancement and sustainable urban development. The construction
market, while facing challenges such as regulatory complexities and a shortage
of skilled labor, is evolving rapidly. Technological advancements, including
the adoption of Building Information Modeling (BIM) and other digital tools,
are enhancing project efficiency and precision. Sustainability has become a
core focus, with green building practices, energy-efficient designs, and the
incorporation of sustainable materials shaping the industry's direction. The
modular construction trend is gaining momentum, offering efficiency,
cost-effectiveness, and sustainability benefits in response to the demand for
rapid urbanization and large-scale infrastructure projects.
Public-Private
Partnerships (PPPs) and privatization initiatives are integral components of
the market's evolution, promoting private sector involvement in infrastructure
development. This strategic shift aims to accelerate project delivery, increase
efficiency, and attract private investments. Despite challenges, the
construction market's adaptability is underscored by its willingness to embrace
innovative solutions and global partnerships. As Saudi Arabia progresses toward
a more diversified and technologically advanced economy, the construction
sector stands at the forefront, not only as a builder of infrastructure but as
a catalyst for innovation, sustainability, and economic growth. The industry's
role extends beyond construction to shaping the nation's future through the
realization of transformative projects that align with the goals of Vision
2030.
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over XX market data Figures spread through XX Pages and an in-depth TOC on the
"Saudi Arabia Construction Market."
The
Saudi Arabia construction market is segmented into sector, end user, construction type and
region.
Based on Construction Type, New Construction segment dominated the Saudi Arabia Construction Market in 2024. New construction dominates the Saudi Arabia construction market due to a confluence of economic, demographic, and developmental factors that underscore the nation's commitment to modernization and growth. The Kingdom of Saudi Arabia has been undergoing rapid urbanization and industrialization, driving the demand for new construction projects across various sectors.
One key driver is the ambitious Saudi Vision 2030, which outlines the country's strategic goals for economic diversification and development. This vision emphasizes the need for new infrastructure, including residential, commercial, and industrial projects, to support a more diversified and dynamic economy. As a result, there is a concerted effort to build new cities, housing complexes, and industrial zones to accommodate the evolving needs of the population and stimulate economic activities.
The growing population, coupled with demographic shifts and urban migration, fuels the demand for new residential construction. Urban centers are expanding to accommodate the influx of people, leading to the construction of modern residential complexes, housing developments, and infrastructure to meet the needs of a rapidly growing population.
Economic development and the promotion of non-oil sectors, such as tourism and entertainment, contribute to the dominance of new construction in the market. The establishment of mega-projects like NEOM and the Red Sea Project requires extensive new construction to create cutting-edge resorts, entertainment hubs, and tourism infrastructure.
The government's focus on improving and expanding transportation networks is another factor driving new construction. Mega-projects like the Riyadh Metro and the development of new airports demand substantial construction efforts, contributing to the dominance of new infrastructure projects in the overall construction market..
Key
market players in the Saudi Arabia Construction Market are:-
- Kabbani Construction Group
- Almabani
General Contractors
- AlKifah Contracting Company
- Nesma & Partners Contracting Company
Ltd.
- AL-AYUNI Company
- Construction & Planning Co. Ltd.
- Contracting & Construction
Enterprises Ltd.
- Binladen Group Global Holding Company
- Al-Rashid Trading & Contracting Co.
- Umm Al Qura For Development &
Construction Company
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“The
Saudi Arabia Construction Market is undergoing a profound transformation as
part of the Vision 2030 initiative. This ambitious agenda seeks to diversify
the nation's economy and propel it into a technologically advanced future.
Mega-projects like NEOM and Qiddiya exemplify this vision, representing smart
cities and innovative urban planning. Despite challenges like regulatory
complexities and a shortage of skilled labor, the industry is advancing with
sustainable practices and digital technologies. The market's adaptability,
coupled with a focus on Public-Private Partnerships (PPPs), underscores its
crucial role in shaping a more diversified, efficient, and sustainable economic
landscape for Saudi Arabia.”
said Mr. Karan Chechi, Research Director of TechSci Research, a
research-based global management consulting firm.
“Saudi Arabia
Construction Market By Sector (Commercial {By Commercial Sector
(Corporate Offices, Hospitality, Healthcare & Medical Facilities,
Educational Institutions, Others)}, Industrial { By Industrial Sector (Oil
& Gas, Chemical & Petrochemical, Food & Beverage, Pharmaceutical,
Others)}, Infrastructure { By Infrastructure Sector (Government Buildings,
Cultural and Entertainment Venues, Transportation Hubs, Others)}, Residential
{By Residential Sector (Apartments, Villas, Traditional Houses, Others)}), By
End-User (Private, Public),
By Construction Type (New Construction, Renovation,
Repair & Maintenance), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth
potential of Saudi Arabia Construction Market and provides statistics
& information on market size, structure, and future market growth. The
report intends to provide cutting-edge market intelligence and help decision
makers take sound investment decisions. Besides the report also identifies and
analyzes the emerging trends along with essential drivers, challenges, and
opportunities in Saudi Arabia Construction Market.
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